Through Amazon’s brand new pay monthly-option, customers in the UK can choose to pay for orders of £400 or more in several installments.
Without having to pay any deposit the customer can choose to spread the loan over two, three or four years depending on the size of the purchase, according to The Guardian. The option will be listed at the checkout of Amazon’s UK website where customers will go through an online credit check when applying for the loan. In exchange for the service Amazon will charge interest at a rate of 16,9 percent.
- The new Amazon Pay Monthly programme provides our customers with further payment options to suit their needs when shopping on our website, and it is easy, convenient and offers competitive rates and flexible terms, said Amazon in a statement.
Optional When Buying From Amazon
Only products dispatched by Amazon are included in the loan service, which means products from other retailers sold on Amazon’s website still has to be paid for in a more traditional manner. Although Amazon’s customers in the US can buy on credit using an Amazon store card, The Guardian concludes that the UK market is probably the first to enjoy a pay-monthly option at Amazon.
To offer the new payment service Amazon has partnered with Hitachi Capital, which also works with British retailer John Lewis.
- Our new trial with Amazon is all about giving people the fastest and most seamless experience when it comes to point-of-sale credit. It means you can go straight from choosing a new dishwasher or fridge to accessing finance options through Hitachi Capital to pay monthly, all while staying on the Amazon website, said Gerald Grimes, Managing Director of Hitachi Capital Consumer Finance.